Memorandum submitted by Hilton
We understand that the CMS Committee is still
accepting responses to its inquiry into the tourism sector in
the UK. As one of the UK's leading hotel chains, it is inevitable
that tourism strategy impacts directly on our business. Conversely,
the services that we provide are of significant importance to
UK tourism.
Hilton Hotels Corporation has its International,
European and UK and Ireland operations based in Watford, a clear
demonstration of our commitment to the UK. We employ 400+ at Watford,
including the senior international management team. Overall, in
the UK, we employ 11,000 staff.
We currently operate 69 hotels in the UK and
have announced plans to double that number in the next 10 years.
Our development plans include diversifying our brand, introducing
Hilton Garden Inn, Hampton by Hilton and Doubletree by Hilton
into the UK market, thereby providing accommodation and services
to domestic and international guests that will suit people on
a variety of budgets.
In our brief submission we have addressed from
the Inquiry's Term of Reference those which are most relevant
to Hilton, including our:
(ii) analysis of a previously proposed "Bed
Tax";
(iii) approach to promoting domestic tourism;
(iv) contribution to the provision of accommodation
for the 2012 Olympic Games; and
(v) employment and training strategies.
If you do require further information or clarification
on any of the points addressed in our submission, please do not
hesitate to contact me.
BACKGROUND TO
HILTON HOTELS
CORPORATION
1. Hilton Hotels Corporation (hereafter
Hilton) currently operates 69 hotels in the UK with over 14,700
bedrooms and 11,000 staff.
2. Hilton bases its International, European,
UK and Ireland operations in Watford where we employ 400+ people,
including the senior management team. This is a clear demonstration
of our commitment to the UK.
3. Globally, Hilton currently operates 2,800
hotels, with 490,000 rooms in more than 80 countries and 100,000
staff.
4. We are committed to continuing to grow
and develop our presence in the UK, with ambitious plans to double
the number of hotels in the UK over the next 10 years. The new
developments underline Hilton's commitment to, and investment
in, the tourism industry in the UK and this will further strengthen
and continue our leadership in the hospitality sector.
5. Our ambitious development plans will
introduce into the UK brands such as Hilton Garden Inn, Hampton
by Hilton and Doubletree by Hilton, which will suit visitors on
a variety of budgets.
"BED TAX"
6. On the issue of the "bed tax"
we agree with the industry wide position and oppose the "bed
tax" on the grounds that:
a. The costs would have to be passed onto
the consumer which would make England as a tourist destination
even less competitive than other countries, particularly as it
is already considered to be an expensive destination.
b. In effect the "bed tax" would
be a double taxation given that hotels already pay business rates
for local services. The hotel industry is already heavily taxed
where VAT on accommodation is more than three times greater than
the reduced rate in France and twice the European average of 8.5%.
c. Research by VisitBritain has shown that
every 1% rise in hotel prices leads to a 1.3% fall in inbound
visitor numbers.
7. As the Committee will be aware, the Lyons
Report, published on 21 March 2007, recommended that Ministers
consult on giving powers to local authorities to levy a tourism
tax. Hilton strongly supports the Government's position, following
the publication of this report, that: "The Government
does not intend to introduce a tourism tax". We urge
the Government to retain its commitment not to impose a "bed
tax" which will have a negative effect across the entire
tourism industry in the UK.
PROMOTING DOMESTIC
TOURISM
8. Hilton is actively working to promote
tourism in, and to, the UK. As a major provider of conference
facilities we promote extensive interregional business travel
in the UK. We also actively promote weekend and leisure travellers
from around the UK and have a particularly strong commitment to
the traditional UK resorts such as Brighton and Blackpool—as
well as many of the key cities. This helps to bolster these local
economies through job creation and investment. Our development
plans over the next ten years will continue to strengthen our
commitment to tourism in the UK, particularly with the wider scale
of affordability through the different Hilton brands, and the
accessibility of new hotels which will be linked to existing transport
infrastructure.
9. Hilton supports the agencies that exist
to promote tourism in the UK, such as VisitBritain, and encourages
the Government to ensure that they receive proper levels of funding
and support to continue to champion domestic tourism.
THE ENVIRONMENT
10. As the UK's leading hotel chain we are
committed to ensuring that the environment in which we operate
is protected and sustained.
We have been keen to promote more environmentally
friendly forms of tourism through our hotels via a number of initiatives.
i. Carbon-free electricity has been installed
in 69 hotels in the UK and Ireland. This will see an offset of
CO2 emissions by more than 64,000 tonnes in 2007, 56% of Hilton's
total carbon footprint. This follows a £4 million investment
in 2006 with another £4 million being spent this year.
ii. A "Recycling Centre of Excellence"
as a pilot scheme at the Hilton Glasgow has been set up and will
shortly be rolled out in other hotels across the country. The
hotel has seen a reduction of 30% in its volume of general waste
sent to landfill.
iii. 10,600 water saving fixtures have been
installed in our hotels, saving 180 tonnes of water a day.
iv. All 11,000 team members are trained in
energy reduction, and there is now an environmental element to
the induction for new team members.
LONDON 2012 OLYMPICS
11. With 18 hotels in the capital, 69 hotels
in the UK and many more set to come, Hilton Hotels is eagerly
awaiting the arrival of the London Olympics in 2012. Hilton believes
that the Olympics will not only attract the world's attention
but also highlight what an incredible place London and the UK
is, not least thanks to the quality of its accommodation.
12. All of our London hotels are well placed
around the city to support and benefit from the event, before,
during and afterwards. As well as the Olympic site in Stratford,
many of the events will be held in venues across the capital including
Wembley Stadium, where we have a new hotel opening in 2010.
13. With our ambitious development plans
which will see the likes of Hilton Garden Inn, Hampton by Hilton
and Doubletree by Hilton, which will suit visitors on a variety
of budgets, we believe that Hilton will make a significant contribution
to the accommodation needs during the Olympic games.
PEOPLE AND
EMPLOYMENT
14. As mentioned earlier, Hilton has 11,000
employees in the UK and bases its International, European, UK
and Ireland operations in Watford where we employ 400+ people,
including the senior management team.
15. Hilton and the hospitality industry
in which we are a major player understand the importance today
to the UK economy of skills and training in the workplace. In
addition, we recognise and address challenges particular to the
industry: retention of staff and commitment to support vulnerable
and migrant workers are two key areas that we are addressing.
16. We recognise that in order to continue
to deliver a first class service to our customers we must deliver
first class training and development to all of our team members.
17. The training and skills programme we
operate is among the best in the industry. A survey by the Financial
Times in 2005 of top UK employers put Hilton in the top 50,
the only hotel chain to feature.
18. The main focus of our training is on
customer service. Examples of our wide- ranging training programmes,
which go right up to General Management training, include:
i. Ensuring our employees develop basic skills,
particularly migrant workers or those who lack basic literacy.
The company has relations with various language schools and team
members are trained locally to their hotel.
ii. A "Passport to Hilton" training
scheme that was formed in response to an analysis of customer
experience and then refined down to 10 touch-points. Team members
are trained to focus on these key points in order to broaden understanding
of customer priorities.
iii. Our groundbreaking Hilton University
programme for graduates. This is intranet based, with between
2,000-3,000 courses, covering every aspect of hospitality.
19. We are determined to attract and nurture
the right people to come and work with us and we are committed
to working with partners, including Government, to position hospitality
in the UK as a worthwhile and rewarding career.
October 2007
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